7 Reasons to review your estate plan

Benjamin Franklin said it: “Nothing in this world can be said to be certain but death and taxes.” Thanks to the Tax Cuts and Job Acts (TCJA), which doubled the individual estate gift and Generation Skipping Trust (GST) tax exemptions, certainly less people will be subject to estate taxes upon death. But even if you're not impacted by federal estate tax, there are still plenty of sound reasons to review and update your estate plan, including:

1. Asset disposition. Your Last Will and Testament is the most important vehicle for documenting your intentions, even if you have a revocable trust. Your will outlines how your assets will be disposed: either directly to beneficiaries, through an existing trust (inter vivos trust), or into a testamentary trust that's created upon your death. In addition, your will outlines your bequests, both financial and non-financial (such as family heirlooms), to your heirs and charitable organizations.
2. Management of your estate. A key aspect of estate planning is appointing an executor — the person or institution who will handle the affairs of the estate. This role involves accounting for assets and liabilities, submitting your will for probate, managing tax and administrative filings, and ensuring your assets are disposed according to your wishes. In addition, if you've created a trust under your will, you'll need to designate a trustee or fiduciary to administer the trust. You can appoint more than one executor or trustee, and even choose the same person for both roles.
3. Guardians for minor children. If you have minor children or children with disabilities, your will should designate a guardian and a successor guardian for their custody and care. This choice is easy if you have a surviving spouse. However, you'll also need to select an alternate guardian in the unlikely event you and your spouse die simultaneously. You may also consider setting up a monetary stipend for your guardian.
4. Trust strategies. If you want to gain greater control of your assets and how they're distributed, consider making a trust part of your estate plan. A trust is especially helpful with controlling how assets are disposed to children, including minors, individuals with disabilities, and heirs who have addiction or spending issues. Trusts can be set up during your lifetime (inter vivos) or upon your passing (testamentary), and are governed by state law.
5. Additional documents. In addition to your will, you may want to create other important ancillary documents, including a power of attorney over financial matters, health care proxy, and living will to direct your health care wishes. I also recommend including another important, though non-legal document, a Letter of Final Wishes.
6. Tax planning. New tax regulations have changed estate planning. Previously, estate planners focused on titling assets for married couples, allowing the first spouse to pass to use the lifetime credit. In addition, older wills often provided that any lifetime credit not used could be directed into bypass trusts. However, recent changes — including the doubling of the estate tax exemption — now allow unused credit from the first spouse to pass to inure the benefit of the surviving spouse. Another important thing to recognize is that many states don't follow the federal estate tax provisions. As such, you may have a federally exempt estate that could be assessed a significant state tax. You should be aware of these and other tax considerations that could impact your estate planning.
7. Gifts. In addition to doubling the individual estate tax exemption, the TCJA also doubled the limits on allowable lifetime gifts. Though gifts offer tax-saving benefits, they can also negatively impact the lives of recipients who may not be equipped to manage them responsibly. That's why it's vital to carefully consider the timing of gifts and whether they should be made as part of a trust or directly.

There's no question that the TCJA has greatly reduced or even eliminated estate tax liability for many. However, it hasn't changed the need to create and continually review your estate plan.

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